ABSTRACT
Foreign direct investment is an important element of strengthening developing countries, as it represents a source of knowledge, capital, and technology in the country, and also helps to stimulate the growth of the economy. Foreign direct investment boosts national production, which means more jobs, more income, and lower prices for local production. The article analyzes the special importance of foreign direct investments for the economy and social conditions of developing countries, including Georgia, a country with the status of a candidate for the European Union. Georgia is approaching the big family of the European Union, which is achieved through consistent and gradual steps, following European principles and values. The candidate status is an opportunity for Georgia to access additional financial resources, which implies gradually access to those programs and instruments that are available to countries in the process of joining the European Union. Economic benefits include an increase in foreign direct investment. The article analyzes the dynamics of the volume of foreign direct investment in Georgia, in various aspects, including country groups, regions, EU countries and sectors. The purpose of the article is to evaluate the economic and social role of direct foreign investments in Georgia and the advantages of joining the European Union in the mentioned context. As a conclusion, the main findings are formulated, the existing challenges are identified and relevant recommendations are given.

Keywords: Foreign direct investments, European Union, Economic development, Economic growth.

JEL Codes: F21